Recognizing the distinction between borrowed reserves and the nonborrowed monetary base, the money supply model is specified as

Recognizing the distinction between borrowed reserves and the nonborrowed monetary base, the money supply model is specified as

Recognizing the distinction between borrowed reserves and the nonborrowed monetary base, the money supply model is specified as




A) M = m × (MBn - BR).
B) M = m × (MBn + BR).
C) M = m + (MBn - BR).
D) M = m - (MBn + BR).



Answer: B